During the housing collapse in the early 2000s, Florida was hit hard with foreclosures. With over a quarter of 2015 South FL real estate sales in the distressed home market, many of these homes are still available for sale.
South Florida real estate investors are wise to invest in distressed properties. Their low sales prices combined with low-cost labor and easy exit strategies are an excellent way to get some quick cash back in your pocket.
Low Sales Prices
There are a number of ways to find distressed homes in South Florida outside of the MLS. Trustee sales, tax liens, and online auctions are just a few. Be sure to work with an agent who understands where to find investment properties, as a number of scams exist.
Easy to Make Improvements
One of the great things about buying properties in South Florida is the combination of mild winters and a large pool of low-cost labor. The pleasant weather makes construction projects easier to complete because it will not cause as many scheduling delays.
Inexpensive labor is widely available because many Florida areas feature a low cost of living. Because workers can afford to live on less, you’ll save money on your project.
Easy Exit Strategies
With over half of Miami living in rental properties, you can get a long-term return on your investment by renting your previously distressed property. Take advantage of government programs that provide free advertising, pre-screened applicants, and reliable income.
When your distressed home is complete, selling provides you the fastest return on your investment. WalletHub named several South Florida cities as the best places to flip a house in 2016.
You can choose to sell directly, but using a real estate agent will help you get the most for your money. Consult them early, as agents can help you with a general direction for your project. Their intimate market knowledge will help you choose the most profitable improvements to make to your home.
Wrapping It Up
Investing in distressed properties for resale is a great way to quickly inject cash into your portfolio. If you opt to rent, try getting into a government-backed rental program for more reliable income. Even though the distressed market is slower than in the past, a large supply of property is still available for purchase.